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One of the common misconceptions of cryptocurrency and NFTs is that they are centered around intrinsic but ultimately unproductive values. Comparisons are often made to stocks and shares to advance the stability of blockchain investments. But, in the minds of many, to draw such a connection ignores future projects’ potential. Despite fluctuating markets, the ventures succeeding today focus on the tangible and are finding new ways to draw in community members.
One such example is GolfDAO. Co-founded by Anthony Sandoval in January 2022, the project aims to combine the community engagement of crypto with the long-term reliability of real estate investment. In this case, members (Web3 and golf enthusiasts) plan to become co-investors in Pine Ridge Golf Course, OR, with the lawyer Kenneth Byrd serving as the project’s lead investor.
The endeavor is set to be governed by a decentralized autonomous organization (DAO), a kind of council of investors built on blockchain-based smart contracts. It’s an example of the physical universe potentially benefiting from the metaverse and makes up a new wave of projects employing the following fundamentals:
Pick an established investment
NFTs may feel foreign to a significant proportion of the general public, so a growing number of projects are centered around familiar concepts or institutions. For example, contemporary tokens could represent industries such as hospitality or evoke an environmental message.
Real-world ideas are not only able to inspire a project’s aesthetic—but they can also form the basis of related investments. GolfDAO has offered the community ownership and management of a golf course, which has been in business since the 1950s.
With the most recent NFT projects aiming to subvert expectations and push technological and sociological boundaries, established, stable investments could hush doubters. Regardless of market trends, community members of these projects will always be able to rely on their collaborative governance of real property.
Add new value
Replicating a conventional property investment will not alone make the Web3 argument. Projects need to provide a benefit beyond what could be available from co-owning a business or some real estate.
“DAOs offer the opportunity of real-time discussion and voting,” Sandoval explained. “New ways of ownership can engage the younger generation who may not previously have been involved in investments. Beyond that, they can enhance the environmental and social uses for the land.”
While different organizations set their own rules, DAOs can allow users to participate with a more modest investment, lowering the barrier to entry.
Let the money take a backseat
One of the main contributors to FUD (fear, uncertainty, and doubt) in Web3 circles is the prevalence of money-centric projects. Connecting a real-world asset to an investment opportunity can encourage wary participants. But what many in the community believe is required is project leaders who put utility before profit.
“It’s important that projects encourage people to do their research before investing,” Sandoval said. “Those at the top should look for the best value-for-money alternatives that still provide high quality. Focus on the community and bring in people who are truly interested regardless of the money involved.”
NFTs and cryptocurrency can be a more worthwhile investment if users ensure the tangible advantages on offer live up to current expectations. If leaders keep up their side of the deal, the situation can be a win-win as more community members are motivated to join.
Understand the current limitations
The final piece of the puzzle for many outside-the-metaverse thinkers has yet to be put in place. Growth in Web3 ideas is becoming so rapid that, in some cases, physical world infrastructure cannot keep up. As a result, those looking to develop the universe using the metaverse should identify their limitations pre-launch.
For example, the relationship between DAOs and NFTs and how ownership and returns are regulated still has gray areas. The one outstanding step is for governments to reinforce new projects’ stability with regulations.
But understanding present limitations in Web3 is also about recognizing the possibilities of the future. For advocates, the only known is the unknown, and innovators will step in where traditional institutions do not. If DAOs increasingly buy physical property, legislators may have no choice but to fill in the gaps.